Vedanta, in collaboration with Foxconn, will set up a display fab unit and integrated chip fab unit and OSAT facility in Gujarat.
In a landmark decision, Vedanta Ltd will invest more than Rs1.54 lakh crores in setting up a display fab unit and integrated semiconductor fab unit and OSAT facility in Gujarat. Vedanta Displays Ltd will setup a display fab unit with an investment of Rs94,500 Cr, while Vedanta Semiconductors Ltd will setup an integrated chip fab and OSAT facility with an investment of Rs60,000 cr. The two MoUs are expected to generate around 1 lakh new employment opportunities in the state.
The proposed investment, by the Vedanta and Foxconn Group, for setting up of India’s first display manufacturing fab unit and a semiconductor fab unit will further support the development of upstream and downstream electronics manufacturing clusters and establishing of healthy trade linkages. The Vedanta and Foxconn Group will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water, high quality power, logistics, and a skill ecosystem.
In addition to making India a global partner in the supply chain, the semiconductor fab unit will prove to be a game-changer for the economy. It will create significant employment opportunities for the youth and generate revenue for the state. The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications.
It is PM Narendra Modi’s vision to establish India as a global manufacturing hub and a major player for semiconductor supply chains. Under his visionary leadership, the government has taken several key initiatives to reduce dependence of imports of electronic goods by giving impetus to domestic manufacturing of electronic, semiconductor products and components. To position India as the global hub for electronics system design and manufacturing, the government has notified four schemes for the development of sustainable semiconductor and display ecosystem, OSAT/ATMP in the country with an outlay of Rs76,000 crore; India Semiconductor Mission [ISM], has been established under the Ministry of Electronics & Information Technology (MeitY) for this strategic sector having implications upon national security and economic sovereignty.
The Vedanta and Foxconn Group signed the MoUs with the Government of Gujarat last September 13, 2022, in the presence of Honorable Chief Minister of Gujarat Shri Bhupendrabhai Patel and Honorable Union Minister for Electronics and Information Technology Shri. Ashwini Vaishnaw. Shri Jitubhai Vaghani, Minister for Education, Science and Technology for the Government of Gujarat, was also present on the occasion.
Shri Patel welcomed the Vedanta and Foxconn Group’s mega investment in the state, assuring all necessary support from the government. Shri Vaghani said the project would generate huge employment opportunities for the youth of Gujarat and India at large, while also contributing to the economy and national security.
Shri Vaishnaw highlighted the importance of this investment viz-a-viz Narendra’s vision for achieving self-reliance in the field of semiconductor manufacturing. The minister said that it is a step in the right direction for Gujarat helping towards building a one trillion-dollar digital national economy.
At the MoU exchange ceremony, Brain Ho of Foxconn said that this decision of finalizing Gujarat for the prospective semiconductor and display fab units was a culmination of extensive analysis of possible project sites in India and across the world, over a multiplicity of factors by sectoral experts.
Vedanta Group Chairman Shri Anil Agrawal said that Gujarat has had a long history of having an investor-friendly atmosphere and a robust manufacturing base. Additionally, the recent notified semiconductor policy with excellent incentives on capital expenditure, land, water and power has made Gujarat a very compelling choice for his company’s huge foray into the semiconductor manufacturing sector.
Gujarat is known for a policy driven approach to develop conducive business ecosystem. In line with the above initiatives of the government, the Gujarat government has recently notified the Semiconductor Policy [2022-27] to attract investment in the semiconductor chip manufacturing sector. With the announcement of this policy, Gujarat has become the first and only state to announce a dedicated policy to support the semiconductor and display manufacturing sector. The semiconductor policy provides fiscal and non-fiscal incentives for investors, besides ease of doing business in the state.
The dedicated office Gujarat State Electronics Mission, under the Department of Science & Technology, will function as a Single Point of Contact for all necessary statutory and regulatory approvals in an expedited, proactive and transparent manner for the investors under this policy. The Mission will work to facilitate domestic electronics manufacturing in the state to create a vibrant manufacturing ecosystem.
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